Short answer
SCANSOURCE, INC. (SCSC) filed its fiscal 2025 10-K annual report with the SEC on Aug 21, 2025. It reported revenue of $3.0B (−6.7% year over year) and net income of $72M.
- Top risk flagged: Legal risk: routine litigation including commercial, IP, employment disputes; uninsured adverse outcomes could impact financial results
FY2025 key financial metrics · XBRL
- Revenue
- $3.0B
- −6.7% YoY
- Net income
- $72M
- −7.2% YoY
- Operating margin
- 2.8%
- +0.0 pp YoY
- Gross margin
- 13.4%
- +1.2 pp YoY
- EPS (diluted)
- $3.00
- −2.0% YoY
- ROE
- 7.9%
- −0.4 pp YoY
- Operating cash flow
- $112M
- −69.8% YoY
Source: XBRL data from the SCANSOURCE, INC. (SCSC) FY2025 10-K on SEC EDGAR. USD.
SCANSOURCE, INC. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: technology distribution connecting hardware, SaaS, connectivity, and cloud solutions to ~25,000 channel sales partners in US, Canada, Brazil, revenue $3.04B FY2025
- New operating segment structure effective July 1, 2024: Specialty Technology Solutions and Intelisys & Advisory realigned to reflect sales models including agency sales for next-gen tech
- Strategic emphasis on integrating complex, converging technology solutions and expanding recurring revenue services across both segments
- Employee count approximately 2,100 as of June 30, 2025, with enhanced workforce development programs including ScanSource Leadership Institute and global intranet launched 2023
- Cisco and Zebra products each accounted for over 10% of net sales in FY2025, with multi-year, renewable non-exclusive supplier agreements
Management Discussion & Analysis
- Revenue $3.04B, down 6.7% YoY ($218.9M decrease), Specialty segment down 7.1% to $2.94B, Intelisys up 6.3% to $98.1M
- Gross margin 13.4% vs 12.2%, Specialty margin 10.6% vs 9.7%, Intelisys margin 99.1% vs 99.5%
- Best performing segment: Intelisys & Advisory operating margin 27.7% vs 33.2%, operating income down $3.4M to $27.2M; Worst: Specialty operating income down $0.6M to $66.0M, margin 2.2% vs 2.1%
- Operating income $85.2M, flat 2.8% margin; SG&A up $9.5M to $286.9M (9.4% of sales); Restructuring savings total $20.5M annualized; Interest expense down $5M to $8.0M; Net income $71.5M (2.4% margin)
- Cash flow/capex: Not explicitly disclosed; corporate expenses include $5.4M restructuring, $1.6M legal settlement, $0.9M acquisition costs
- Outlook/guidance: Fiscal 2026 tax rate expected 27.2%-28.2%; macroeconomic risks from tariffs, inflation, foreign exchange; ongoing monitoring and mitigation efforts noted; acquisitions of Resourcive and Advantix completed in 2024
Risk Factors
- Legal risk: routine litigation including commercial, IP, employment disputes; uninsured adverse outcomes could impact financial results
- Geopolitical risk: supply chain exposure to political/social instability in Asia affecting product exports to U.S. channel sales partners
- Operational risk: ransomware incident in 2023 disrupted IT systems critical for ordering and sales processes
- Competitive risk: supplier consolidation (e.g., Cisco, Zebra) reduces distribution options, raising risk of supply shortages and margin pressure
- Financial risk: multi-currency senior secured credit facility with JPMorgan includes leverage and interest coverage covenants, risk of restricted capital access
Generated from the filing text; verify against the original. How to read a 10-K
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